November 2, 2024
How Japan’s youngest CEO transformed Hello Kitty #JapanFinance

How Japan’s youngest CEO transformed Hello Kitty #JapanFinance

CashNews.co

Hello Kitty, arguably Japan’s best loved creation, is celebrating her 50th anniversary.

But all has not always been well at Sanrio, the Japanese company behind the character. The business has been on a spectacular journey of financial peaks and valleys.

Hello Kitty has been ranked the second-highest grossing media franchise in the world behind Pokémon, and ahead of the likes of Mickey Mouse and Star Wars.

Underscoring her global fame, Britain’s King Charles wished her a happy birthday during the state visit to the UK by Japan’s Emperor and Empress in June.

In recent years though Sanrio had been struggling to make money, as interest in Hello Kitty waned.

Two previous surges in Sanrio sales, in 1999 and 2014, were both driven by the character’s popularity. But these jumps in demand for the firm’s products were not sustainable, says Yasuki Yoshioka of investment company SMBC Nikko.

“In the past, its performance had many ups and downs, as if it was on a rollercoaster ride,” Mr Yoshioka says.

Tomokuni Tsuji took over the top job at Sanrio in 2020.
Tomokuni Tsuji took over the top job at Sanrio four years ago [Sanrio]

Then, in 2020, Tomokuni Tsuji inherited the role as Sanrio’s boss.

He is the grandson of the firm’s founder, Shintaro Tsuji, and was just 31 at the time, making him the youngest chief executive of a listed Japanese company.

His grandfather then became Sanrio’s chairman.

Under the younger Mr Tsuji’s leadership, Sanrio changed its marketing strategy of its stable of other characters.

“It is not about lowering Hello Kitty’s popularity but it is about boosting others’ recognition,” he says.

This resulted in Hello Kitty losing the position of Sanrio’s most popular character.

According to a poll of customers, that spot is now held by Cinnamoroll – a blue-eyed white puppy with pink cheeks, long ears and a tail that looks like a Cinnamon roll.

Sanrio is also no longer just about cute characters.

If Hello Kitty is Japan’s ambassador of cute, then angry red panda Aggressive Retsuko – or Aggretsuko – channels the frustrations of an ordinary working woman.

The character, which is popular among Gen Zers, first appeared in a cartoon series on Japan’s TBS Television before it became a global hit on Netflix.

Another unconventional character is Gudetama, or “lazy egg”, who is living with depression and fires out cold one-liners that reflect dark realities of life.

Sanrio characters.
Sanrio is also no longer just about cute characters [Sanrio]

As well as diversifying its characters, Sanrio boosted its overseas marketing and is now tackling counterfeits more rigorously.

“We are now using artificial intelligence to detect fake products and to make removal requests,” says Mr Tsuji.

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